CFI CBCA Core Course
Assessments 2026 Exam
Questions and Answers | A+
Score Assured
What is the main goal of using business writing fundamentals? - 🧠ANSWER
✔✔To reduce mental effort
Which of the following statements describes a "Capacity" strength or
weakness for a company in the 5 Cs of credit framework? - 🧠ANSWER
✔✔The net profit margin ratio is high.
,Which of the following statements describes a "Condition" strength or
weakness for a company in the 5 Cs of credit framework? - 🧠ANSWER
✔✔The risks associated with the industry are high.
Which of the following scenarios would NOT be considered a strength
when assessing the management team as part of evaluating a company's
character? - 🧠ANSWER ✔✔Financial reports are not widely shared and
performance measures have not been identified.
Which of the following ratios most likely indicates strong "Capacity" for a
company? - 🧠ANSWER ✔✔High asset turnover ratio
Select the correct formula to calculate the operating margin ratio. -
🧠ANSWER ✔✔Operating Margin Ratio = EBIT / Revenue
Select the correct formula to calculate the inventory turnover ratio. -
🧠ANSWER ✔✔Inventory Turnover Ratio = Cost of Goods Sold / Average
Inventory
Which of the following most likely indicates strong "Capital" for a company?
- 🧠ANSWER ✔✔Unutilized lines of credit or loans
,Which of the following statements on collateral is NOT correct? -
🧠ANSWER ✔✔Collateral can be used as the main determinant of a credit
decision.
Which of the following tools or methods is used to assess the general
business environment? - 🧠ANSWER ✔✔PEST analysis
Select the loan contract with the lowest risk. - 🧠ANSWER ✔✔A demand
loan with monthly payments secured by assets
Which is not one of the three main financial statements? - 🧠ANSWER
✔✔Statement of equity
What does the balance sheet indicate? - 🧠ANSWER ✔✔The financial
strength of the business
Financing activities - 🧠ANSWER ✔✔Issuing shares and bonds
Operating activities - 🧠ANSWER ✔✔Payments to suppliers; Depreciation
and amortization expense
Investing activities - 🧠ANSWER ✔✔Buying and selling equipment
Which is not a section in the financial statement note disclosures? -
🧠ANSWER ✔✔Management discussion and analysis
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, Balance Sheet - 🧠ANSWER ✔✔Retained earnings; Share captial
Income Statement - 🧠ANSWER ✔✔Rent expense
Cash Flow Statement - 🧠ANSWER ✔✔Sale of property, plant and
equipment
If a company has net assets equal to $3.25 million but is sold for $5.35
million, how much goodwill does the acquirer record on their balance
sheet? - 🧠ANSWER ✔✔$2.1 million
Intangible assets - 🧠ANSWER ✔✔Items of value, which have no physical
substance, that are used to generate revenues
Authorized shares - 🧠ANSWER ✔✔The total number of shares a company
can sell
Contingencies - 🧠ANSWER ✔✔Events that may or may not happen,
depending on certain circumstances
Commitments - 🧠ANSWER ✔✔Future obligations that a company has
agreed to
Assessments 2026 Exam
Questions and Answers | A+
Score Assured
What is the main goal of using business writing fundamentals? - 🧠ANSWER
✔✔To reduce mental effort
Which of the following statements describes a "Capacity" strength or
weakness for a company in the 5 Cs of credit framework? - 🧠ANSWER
✔✔The net profit margin ratio is high.
,Which of the following statements describes a "Condition" strength or
weakness for a company in the 5 Cs of credit framework? - 🧠ANSWER
✔✔The risks associated with the industry are high.
Which of the following scenarios would NOT be considered a strength
when assessing the management team as part of evaluating a company's
character? - 🧠ANSWER ✔✔Financial reports are not widely shared and
performance measures have not been identified.
Which of the following ratios most likely indicates strong "Capacity" for a
company? - 🧠ANSWER ✔✔High asset turnover ratio
Select the correct formula to calculate the operating margin ratio. -
🧠ANSWER ✔✔Operating Margin Ratio = EBIT / Revenue
Select the correct formula to calculate the inventory turnover ratio. -
🧠ANSWER ✔✔Inventory Turnover Ratio = Cost of Goods Sold / Average
Inventory
Which of the following most likely indicates strong "Capital" for a company?
- 🧠ANSWER ✔✔Unutilized lines of credit or loans
,Which of the following statements on collateral is NOT correct? -
🧠ANSWER ✔✔Collateral can be used as the main determinant of a credit
decision.
Which of the following tools or methods is used to assess the general
business environment? - 🧠ANSWER ✔✔PEST analysis
Select the loan contract with the lowest risk. - 🧠ANSWER ✔✔A demand
loan with monthly payments secured by assets
Which is not one of the three main financial statements? - 🧠ANSWER
✔✔Statement of equity
What does the balance sheet indicate? - 🧠ANSWER ✔✔The financial
strength of the business
Financing activities - 🧠ANSWER ✔✔Issuing shares and bonds
Operating activities - 🧠ANSWER ✔✔Payments to suppliers; Depreciation
and amortization expense
Investing activities - 🧠ANSWER ✔✔Buying and selling equipment
Which is not a section in the financial statement note disclosures? -
🧠ANSWER ✔✔Management discussion and analysis
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, Balance Sheet - 🧠ANSWER ✔✔Retained earnings; Share captial
Income Statement - 🧠ANSWER ✔✔Rent expense
Cash Flow Statement - 🧠ANSWER ✔✔Sale of property, plant and
equipment
If a company has net assets equal to $3.25 million but is sold for $5.35
million, how much goodwill does the acquirer record on their balance
sheet? - 🧠ANSWER ✔✔$2.1 million
Intangible assets - 🧠ANSWER ✔✔Items of value, which have no physical
substance, that are used to generate revenues
Authorized shares - 🧠ANSWER ✔✔The total number of shares a company
can sell
Contingencies - 🧠ANSWER ✔✔Events that may or may not happen,
depending on certain circumstances
Commitments - 🧠ANSWER ✔✔Future obligations that a company has
agreed to
